Buenos Aires to Launch Tax Incentives for New Hotels

Buenos Aires is going to create tax incentives for the city’s hospitality industry to accommodate the destination's projected tourism growth. Hoteliers who expand or improve their hotels will be the benefiters.

The autonomous city is planning to receive a greater influx of tourists in 2018 and 2019. Flight reservations from the first two quarters of 2018 for travel to Buenos Aires between July 2018 and June 2019 grew 30 percent.

The city government also announced an increase of 25 percent in bookings for travel between July – Dec 2018. Reservations made from Auckland and Sidney, Australia grew by 94%, followed by London (+76%), Frankfurt (+39%), Bogota (+23%), Madrid (+17%) and the United States (+16%). Room occupancy rates between January and April 2018 were the highest in seven years.

Because of this uptick, the city sees it necessary to expand hotel offerings, to better hotel competition. From January to May 2018, Buenos Aires received more than 795,000, an increase of 3.4 percent or 26,000 more visitors next to the same time frame in 2017. The city says better air connectivity from international destinations is one of the main reasons why there has been a travel surge.

Over the next few months, there will be new connections from Los Angeles and Zurich that are estimated to bring more than 38,000 more tourists per year.